ERP Industry profile and SAP firm profile

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ERP application suites have evolved from humble beginnings to become the primary business system backbone for thousands of organizations. The application functionality has continued to grow and …

ERP application suites have evolved from humble beginnings to become the primary business system backbone for thousands of organizations. The application functionality has continued to grow and expand, and ERP, today, is a broader and more-complex application platform that has evolved through many different technology cycles.
An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment

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  • 1. Industry profile: ERP SystemsFirm profile : SAP
    Amit A. Pawar
    MBA/MS-MIS Class 2010-2012
    Joseph M. Katz Graduate School of Business
  • 2. Primary activities/focus of firms in the industry
    • Develop products that improve the integrity and efficiency of business
    • 3. Support the customers with installation of ERP packages
    • 4. Improve the products by using the feedback received from customers
    • 5. Provide technical support to the existing ERP installations
  • Size, structure, and composition of the industry
  • 6. General trends
    • ERP vendors that traditionally offered a single, internally developed product line now go to market with a broad portfolio of products targeted to specific industry and departmental buyers.
    • 7. Oracle and SAP continue to dominate the market among very large global companies. In the increasingly important SMB segment, though, they face formidable competition from Infor, Sage Group, Microsoft, Lawson, and Epicor.
    • 8. New pricing and deployment models, such as software as a service (SaaS) and enterprise licensing, are starting to gain acceptance. We expect most of the ERP vendors will begin offering on-demand in addition to on-premises options in the near future.
    • 9. The fundamental ERP concept of a single-vendor, pre-integrated suite of packaged business applications is making excellent headway in non-manufacturing markets such as retail, financial services, and public sector.
  • IS trends in the ERP industry
    New user interfaces are making ERP adoption and collaboration easier.
    The following IS platforms and tools indicate trend in ERP software development.
    Platform as a Service (SaaS);
    Big Data and Extreme Information Processing and Management;
    In-Memory Database Management Systems;
    TemplatedImplementation Tools ;
    ERP Mobility;
    Collaborative Decision Making;
    ERP-Specific Augmentation Applications;
    Standard Process Templates
  • 10. Networking
    Attend following Conferences to build network in ERP industry:
    ERP-SCM 2012: 2nd Annual International Conference on Enterprise Resource Planning & Supply Chain Management (Apr. 23, 2012 - Apr. 24, 2012) Location – Indonesia; Organizer - Global Science and Technology Forum (GSTF)
    BizTech’s 2012 Infor ERP VISUAL User Conference - April 24-26, 2012; Location - Chicago, Illinois
    Join ERP Community on Linkedin
  • 11. SAP AG
    Founded in 1972, SAP is one of the leading international providers of business software and, based on market capitalization.
    SAP is the world’s third-largest independent software manufacturer.
    SAP has more than 95,000 customers in over 120 countries and employ more than 47,500 people at locations in more than 50 countries in the European, Middle East, and Africa (EMEA); Americas; and Asia Pacific Japan (APJ) regions.
    SAP is headquartered in Walldorf, Germany.
  • 12. Primary activities/focus of the firm
  • 13. Employees by functional area
  • 14. Financial summary
  • 15. Successes & Crises
    • SAP has recently stepped up efforts to manage and grow the ecosystem more actively. The SAP Community Network now has more than 2 million members.
    • 16. Migration to cloud computing: SAP has begun the first of what is anticipated to become an ever-growing migration of reporting mechanisms to a cloud platform.
    • SAP is enhancing its Solution Manager support tool, but customers are only slowly embracing it, due to a current lack of product flexibility and field expertise.
    • 17. SAP's Web-Based Software Struggles to Get Off Ground SAP AG three years ago launched a version of its business software package that could be accessed by customers over the Internet for a flat monthly fee—one of several industry efforts to reach smaller companies with Web-based services.
    • 18. SAP customers often report that SAP account executives are focused on selling software, rather than helping to measure and enhance value from existing investments.
  • IS trends
  • 19. Key leaders
    Werner Brandt (56)
    Joined SAP: 2001
    Bill McDermott (48)
    Joined SAP: 2002
    Jim HagemannSnabe (44)
    Joined SAP: 1990
    Gerhard Oswald (56)
    Joined SAP: 1981
    Vishal Sikka (42)
    Chief Technology Officer
    Joined SAP: 2002
    IS Leaders at SAP:
    Vishal Sikka (CTO) - He is responsible for innovation, technology and architecture across the company, and global research.
    Gerhard Oswald (SAP executive board member) - He is responsible for SAP active global support, global IT, globalization services, quality governance & production, operations, and SAP Labs network.
    Networking resources:
    • SAP TechEd 2012
    • 20. SAP Linkedin group
    • 21. SAP SDN community podcasts
  • References
    • 22.
    • 23. Panorama Consulting ERP Report
    • 24. SAP Financial Report 2010